Playa Dorada Tennis Club

Critical points:
Growing demand for tennis because of growing demand for Playa Dorada resorts

Task ahead:
To formulate an expansion strategy to cater to the growing for Tennis Sub tasks: - To improve the capacity utilization - To improve the pricing structure , include more customer engagement packages - To open new courts if necessary

Customer Analysis:
Who are the customers? y Generally families with kids with the head of the household earning more than $125000 per year. They spend on average of 9-10 days at the resort during vacations When do customers prefer to play tennis? y Customers play tennis mostly during vacation and specifically during the morning hours and evening hours y Customers would not play for more than a hour in general and hence the additional hours pricing structure in not that helpful What do customers prefer when playing tennis? y Customers prefer Clay courts to hard courts but more number of clay courts more the cost as clay courts would incur additional maintenance cost y Customer prefer good climate while playing tennis, this can be observed in less number of playing hours during high days of humidity and high mid day temperatures

Strategy to be followed by Douglas Hall:

Short Term Strategy: y The short term strategy could be that there is sufficient space to start 4 new courts within the existing space y Increasing the number of playing hours, the average timings currently are 8am 7pm, these can be increased two to three hours morning and evening y Overhead lights can be installed to ensure that customers can play during early morning hours and later night hours y Players who play tennis also like to play similar games such as squash, so open squash courts which require less space when compared to tennis courts, less maintenance cost y Since most of the customers are economically well positioned, other sports such as Golf can be developed with internal tournaments held during vacations for customers

Providing golf coaching facilities for the kids of the families

Long Term Strategy: y Long term, Douglas hall can focus on opening more courts at the new location inside the resort y Opening up multipurpose halls at the new location, the multipurpose halls could be of 10-storey and include facilities such as indoor tennis courts, other games such as table tennis, badminton, gymnasium, yoga and aerobics facilities y Because revenues would increase in the long term, depending on the demand for tennis and preference for courts, the additional hard courts which were previously setup can be converted to clay courts. y Modifying the pricing strategies according to the seasonal cycles, reduced prices or more discount packages during low demand Hence, Douglas should properly evaluate the demand scenario, estimate pricing and capacity utilization and implement the appropriate strategy